Carbon tax sparks mixed reaction from the north coast

The federal member for Page, Janelle Saffin, says the government's carbon tax had to be introduced to protect the environment.

The government has announced a $23-per-tonne carbon price that will start from next year.

It is estimated the average cost to local households will be about $10 per week, although the Federal Treasurer, Wayne Swan, has promised tax cuts and compensation to low-income earners and pensioners.

Ms Saffin says action had to be taken to reduce Australia's emissions.

"Everybody who is in that low-to-middle income household bracket will receive assistance," she said.

"But the key thing is that action has to happen, we cannot keep pumping that harmful carbon pollution out and not do anything about it," Ms Saffin said.

A lobby group for the region's small-business sector is voicing concerns about the potential impact of the new tax.

Kellon Beard, the regional spokesman for the New South Wales Business Chamber, says the tax could hurt smaller operators.

"We believe that it adds new and unnecessary risks in the operation of Australian businesses, and it doesn't do a lot to help small business," he said.

"We don't question the science and we don't question that people want to address pollution - we just don't think a tax is the best way to do it." Mr Beard said.

The chief executive of New South Wales Sugar, Chris Connors, says the cost of producing sugar on the north coast will increase because of the new carbon charge.

"The cost of diesel, by way of changes to the excise and rebate system, will mean a significant increase in our operational costs, especially tranport," he said.

"It will be a juggling act because we will have to put our sugar prices up and at the same time remain competitive from the point of view of imports," Mr Connors said.